Significant rise in buy-to-let income for London landlords over the past tax year

Is London still the lucrative arena for rental property investment that it once was? Several new reports have given encouraging answers to that question.

One such report revealed that buy-to-let income for London-based landlords reached £7 billion during the last tax year. Estate agent Ludlow Thompson said that this amounted to some 20% of the total for all landlords living in the UK.

What else did we learn from Ludlow Thompson’s findings?

The company said the £7 billion that private landlords residing in the capital generated in total revenue from their investments in residential property in the year to 5th April 2018 represented a 6.4% increase on the previous year’s figure.

The UK as a whole saw 4.8% growth over the same time period on average, reaching £34.8 billion in 2017/18, compared to the £33.4 billion recorded a year earlier.

Even with the industry having become subject to greater regulation in recent times, buy-to-let has preserved its reputation as a profitable and comparatively low-risk investment opportunity. It has been observed that property tends to bring more consistent returns over a longer period than such alternative asset classes as stocks, shares, cash ISAs and government bonds.

Ludlow Thompson also noted that London’s private landlords made an average of around £20,000 in property income in the past year, as opposed to about £14,000 for landlords across the UK.

Furthermore, 16 of the UK’s top 20 private landlord hotspots – as ascertained on the basis of the average amount of annual property income per capita – were in London. Kensington and Chelsea, Westminster, the City of London, Camden, Barnet, Hackney and Epping Forest were the areas that saw landlords based in them enjoy the highest levels of average property income.

But there’s more great news set to come in 2019

As for what the near future holds, another prominent lettings agency in the capital – Chestertons – has said that London’s recent rental increases are likely to continue into the New Year, not least because of the declining supply of homes available to prospective tenants.

Chestertons’ head of residential lettings, Richard Davies, has forecast a 2.5% increase in rents in London during 2019, and 11.5% total rental growth by 2022.

Such developments should give you plenty of reason to be heartened when you are looking for a company that can provide a professional and independent property inspection in London – as we can do here at Yellow Oak Inventories LTD. So why not give us a call about any of our services today on 020 3713 4933 or email info@yellowoak.co.uk.